ACE

ING DESIGN
LOCATION AND
SYSTEM DESIGN MANAGEMENT
ant D ACCOUNTING
C
n is to provide

CONTROL
both ainproduct available for
aking
sfy customer and
ngof it the
through the market. It
ul
n, process
edspackaging,
of
design
and delivery.
B
A
opriateness
ntal to a of the
nsure a company’s sales.  
objective. Process
through
wstribution
of the whole
system, the planner
pace in
hat the distribution
a myopic outlook.channel is
erms.layout
Thevalue
overallwith
approach to
stomer
heor work
services depends on a
gement at various
rmationthe type of product,
cluding
d process design,
outthe
y; andmarket served; the
ired, which deals
people
operations and the firm's
osion.
manufacture
inishes,The process theof setting FELIPE D. SORIANO JR
rategy
of the deals
aims andwith
objectives of
way that
smer participation,
a strategic level decision.
 PROCEDURES ON
LOCATION
DECISION
LOCATION AND
PLANNING ANLYSIS
DISTRIBUTION
PROFILES
TYPES OF
DISTRIBUTION
ORGANIZATIONAL
ARCHITECTURE
ACCOUNTING’S ROLE IN THE ORGANIZATION’S ARCHITECTURE
 CHIEF FINANCE OFFICER
The chief financial officer, or CFO, is the top of the
accounting organization chart. The CFO hires and
oversees all staff and works closely with the CEO on
financial matters. CFOs are responsible for ensuring
compliance with government regulations, such as
audits and tax returns. On a broad level, the CFO must
PLANNING ANLYSIS

ORGANIZATIONAL
DISTRIBUTION
PROCEDURES ON

ORGANIZATIONAL
ARCHITECTURE

ARCHITECTURE
have a solid understanding of the company's revenues
LOCATION AND

PROFILES
LOCATION
DECISION

and costs, and will make recommendations to ensure

the financial success of the company.

CONTROLLER
The controller is responsible for managing the
accounting staff that provides managerial accounting
information used for internal decision making,
financial accounting information for external reporting
purposes, and tax accounting information to meet tax
filing requirements
 MANAGERIAL FINANCIAL TAX
ACCOUNTANT ACCOUNTANT ACCOUNTANT

The managerial The financial accountant The tax accountant

accountant reports reports directly to the reports directly to
directly to the controller controller and assists in the controller and
PLANNING ANLYSIS

and assists in preparing preparing financial assists in preparing

ORGANIZATIONAL
DISTRIBUTION
PROCEDURES ON

ORGANIZATIONAL
ARCHITECTURE
LOCATION AND

ARCHITECTURE
information used for information, in accordance tax reports for
PROFILES
LOCATION
DECISION

decision making within with U.S. GAAP, for those governmental

the organization. Reports outside the company. Reports agencies, including
prepared by managerial prepared by financial the Internal
accountants include accountants include a Revenue Service.
operational budgets, cost quarterly report filed with the
estimates for existing Securities and Exchange
products, budgets for Commission (SEC) that is
new product lines, and called a 10Q and an annual
profit and loss reports by report filed with the SEC that
division. is called a 10K.
 TREASURER
The treasurer reports directly to the CFO. A
treasurer’s primary duties include obtaining sources
of financing for the organization (e.g., from banks
and shareholders), projecting cash flow needs, and
managing cash and short-term investments.

INTERNAL AUDITOR
PLANNING ANLYSIS

ORGANIZATIONAL
PROCEDURES ON

ORGANIZATIONAL

ORGANIZATIONAL
ARCHITECTURE
LOCATION AND

ARCHITECTURE

ARCHITECTURE
LOCATION
DECISION

An internal auditor reports to the CFO and is responsible for confirming

that the company has controls that ensure accurate financial data. The
internal auditor often verifies the financial information provided by the
managerial, financial, and tax accountants
ACCOUNTS CLERK
The entry-level position in an accounting organization is an
account clerk or accounting clerk. Account clerks are usually
responsible for maintaining files and entering data into the
accounting system. They'll process bills and payments, and arrange
for money to be deposited in the bank. Account clerks tend to have
more clerical duties, such as opening the mail, matching checks
with invoices, and mailing out payments and invoices.
 RESPONSIBILITY ACCOUNTING
Responsibility accounting is a system of accounting where specific
persons are made responsible for the accounting of specific area and
cost control. If that cost increases then the person will be held
responsible and answerable. In this type accounting system,
responsibility is assigned on the basis of a person’s knowledge and
skills and the proper authority is given to that person so that he can

DISTRIBUTION

DISTRIBUTIO N
CHANNELS OF
DISTRIBUTION
make a decision and show his performance.

TYPES OF
RESPONSIBILITY

PROFILES
ACCOUNTING
 TYPES OF RESPONSIBILITY ACCOUNTING
Responsibility accounting implies that individuals in an organization
cannot be responsible for those items which they cannot control.

Cost and revenue centers basically reside in operational layer of

management whereas moving one step above we have profit center which
is basically tactical layer of management and moving even further above
TYPES OF PRDUCTION
METHODS OF WORK

PURPOSE OF WORK

TYPES OF PRDUCTION
MEASUEMENT
MEASUREMENT

MEASUREMENT

we have strategic layer of management where managers are responsible to

SYSTEM

make important long-term decisions that are crucial and important to the
WORK

SYSTEM

organization. Have a look at the following figure to easily understand how

responsibility centers are connected with each other.
 COST CENTER

Key Takeaways:

 A cost center is a function within an organization that

does not directly add to profit but still costs money to
operate, such as the accounting, HR, or IT
TYPES OF PRDUCTION
METHODS OF WORK

PURPOSE OF WORK

MEASUEMENT
MEASUREMENT

MEASUREMENT

departments. 

PRDUCTION
TYPES OF
SYSTEM

SYSTEM
WORK

 The main use of a cost center is to track actual

expenses for comparison to budget.
 A cost center indirectly contributes to a company’s profit
via operational excellence, customer service, and
enhanced product value.
 The manager for a cost center is only responsible for
keeping costs in line with budget and does not bear any
responsibility regarding revenue or investment
decisions.
 EXAMPLE OF COST CENTER

ABC Pharma Inc is engaged in manufacturing of medicine

company has decided to produce 10000 medicine in the year
2018 for which company has defined the budget of $ 90000 at
the beginning of the year but at the end of the year, it has
METHODS OF WORK

PURPOSE OF WORK

MEASUEMENT
MEASUREMENT

MEASUREMENT

noticed the actual cost incurred for the production is $95000.  

PRDUCTION
TYPES OF

PRDUCTION
SYSTEM
TYPES OF

SYSTEM
WORK

There is an excess expenditure of $5000 over-budgeted

expenditure which responsibility manager has to explain why
this has increased.
 PROFIT CENTER

Key Takeaways
 A profit center is a branch or division of a company that
directly adds to the corporation's bottom-line profitability.

TYPES OF PRDUCTION
METHODS OF WORK

PURPOSE OF WORK

TYPES OF PRDUCTION
MEASUEMENT
 A profit center is treated as a separate business, with
MEASUREMENT

MEASUREMENT

revenues accounted for on a standalone basis and balance

SYSTEM
WORK

SYSTEM
sheet.
 The opposite of a profit center is a cost center, a corporate
division or department that does not generate revenue.
 PURPOSE OF WORK MEASUREMENT
Work measurement is concerned with investigating,
reducing and subsequently eliminating ineffective time,
that is time during which no effective work is being
performed, whatever the cause. Work measurement, as
the name suggests, provides management with a means
METHODS OF WORK

PURPOSE OF WORK

MEASUEMENT
of measuring the time taken in the performance of an
MEASUREMENT

MEASUREMENT

PRDUCTION
TYPES OF

PRDUCTION
SYSTEM
TYPES OF
operation or series of operations in such a way that

SYSTEM
WORK
ineffective time is shown up and can be separated from
effective time. In this way its existence, nature and extent
become known where previously they were concealed
within the total. To see how much work has been done by
the worker and how much salaries is given to him
METHODS OF WORK
MEASUREMENT
PURPOSE OF WORK
MEASUREMENT
WORK
MEASUEMENT
TYPES OF
PRDUCTION
SYSTEM
TYPES OF
PRDUCTION
SYSTEM
 PROCESS LAYOUT
Process layouts are found primarily in job shops, or firms that
produce customized, low-volume products that may require
different processing requirements and sequences of operations.
Process layouts are facility configurations in which operations of
a similar nature or function are grouped together. As such, they
ERGONOMICS
SYMPTOMS AND

GROUP LAYOUT

occasionally are referred to as functional layouts. Their purpose

DIFFRENCE
CUMULATIVE
TREATMENT

DISORDERS

PRODUCT
LAYOUT
TRAUMA

is to process goods or provide services that involve a

KEY

variety of processing requirements.

ADVANTAGES:
DISADVANTAGES:
Flexibility
Cost
Utilization
Motivation
System Protection Confusion
 PRODUCT LAYOUT
Product layouts are found in flow shops (repetitive
assembly and process or continuous flow industries). Flow
shops produce high-volume, highly standardized products that
require highly standardized, repetitive processes. In a product
layout, resources are arranged sequentially, based on the
KEY DIFFRENCE
ERGONOMICS
SYMPTOMS AND

routing of the products.

GROUP LAYOUT
CUMULATIVE
TREATMENT

DISORDERS

PRODUCT
Product layout efficiency is often enhanced through the

LAYOUT
TRAUMA

use of line balancing. Line balancing is the assignment of

tasks to workstations in such a way that workstations have
approximately equal time requirements.

ADVANTAGES Output Cost Utilization

System
DISADVANTAGES Motivation Flexibility
Protection
 KEY DIFFERENCES BETWEEN PROCESS AND
PRODUCT LAYOUT
BASIS FOR PRODUCT LAYOUT PROCESS LAYOUT
COMPARISON
Meaning Product Layout is a type of layout Process Layout refers to the type
design in which the resources of layout design wherein the
needed to produce the product are resources having homogeneous
arranged in one line, as per the processes or functions are
sequence of operations. combined together.
ERGONOMICS
SYMPTOMS AND

GROUP LAYOUT

DIFFRENCE
CUMULATIVE
TREATMENT

DISORDERS

Product Standardized Customized

PRODUCT
LAYOUT
TRAUMA

Workflow Identical flow and sequence of Variable flow, relying on the nature

KEY
operations for each unit. of the job.
Inspection Minimum inspection is there, Inspection is conducted multiple
during the sequence of operations. times during the sequence of
operations.
Results in Transfer lines Group Technology
Production Time Less Comparatively high
Production Cost High fixed cost and low variable Comparatively low fixed cost and
cost. high variable cost.
Effect of breakdown Due to the interrelated system, Machinery breaks down does not
machinery breakdown can have a significant effect on the final
seriously affect production. output.
Suitable for Mass production with less job Moderate production with more job
variety. variety.
 CELLULAR/ GROUP TECHNOLOGY
LAYOUT
Cellular manufacturing is a type of layout where machines are
grouped according to the process requirements for a set of similar
items (part families) that require similar processing. These groups
are called cells. Therefore, a cellular layout is an equipment layout
ERGONOMICS
SYMPTOMS AND

configured to support cellular manufacturing.

DIFFRENCE
CUMULATIVE
TREATMENT

DISORDERS

PRODUCT
A group technology (or cellular) layout allocates dissimilar

LAYOUT

LAYOUT
TRAUMA

GROUP

KEY
machines into cells to work on products that have similar weights
shapes. and processing requirements. Group technology (GT)
layouts are now widely used in metal fabricating computer chip
manufacture and assembly work. The overall objective is to gain the
benefits of product layout in job shop kinds of production

ADVANTAGES Cost Flexibility Motivation

 ERGONOMICS

A study of the interaction of the human body with the

surrounding environment will be able to achieve a balance
between the workplace design and the human physical
demands.
Ergonomics is a science related to the suitability of an office

ERGONOMICS
SYMPTOMS AND

GROUP LAYOUT

DIFFRENCE
CUMULATIVE

design to people. By taking into account people’s capabilities

TREATMENT

DISORDERS

PRODUCT
LAYOUT
TRAUMA

KEY
and limitations, an ergonomically designed workplace design
strives to be effective in fulfilling the functional requirements of
users. The workplace design should aim to propagate intuition,
teamwork, and more importantly, provide a safe and comfortable
environment.
Workplace ergonomics is the science of designing the workplace,
keeping in mind the capabilities and limitations of the worker. Poor
worksite design leads to fatigued, frustrated and hurting workers. This
rarely leads to the most productive worker. More likely, it leads to a painful
and costly injury, lower productivity and poor product quality.
 ERGONOMICS AND CUMULATIVE TRAUMA
DISORDERS

A Cumulative trauma disorder, also known as CTD, is defined as the

excessive wear and tear on tendons, muscles and sensitive nerve tissue
caused by continuous use over an extended period of time. CTDs can
develop from improper work positioning, repetition or force
SYMPTOMS AND

GROUP LAYOUT

DIFFRENCE
Types of Cumulative Trauma Disorders 

CUMULATIVE
TREATMENT

DISORDERS

PRODUCT
LAYOUT
TRAUMA

KEY
Carpal Tunnel Tendonitis Shin Splints Bursitis
Syndrome
A condition that This is a painful Shin splints are an It's most common
causes pinching on condition marked injury to the front in the shoulder,
a nerve in the by inflammation lower leg or more knee and hip
wrist. It can be and swelling of a specifically, the joints, after
painful and in tendon, which are shin bone repetitive motions
some cases the fibrous bands like running and
debilitating that connect bones reaching
to muscles
 SYMPTOMS AND TREATMENT CUMULATIVE
TRAUMA DISORDERS

SYMPTOMS
The three main risk symptoms found in computer workstation
environments that can lead to CTDs are:
 Awkward posture and position such as bent wrists, elbows held

ERGONOMICS
away from the body, outstretched arms or slumped shoulders

SYMPTOMS AND

GROUP LAYOUT

DIFFRENCE
ENVIRONMENT

CUMULATIVE
SAFETRY AND

TREATMENT

DISORDERS
follow

 Repetitive action from typing, keying and sorting operations

PRODUCT
LAYOUT
TRAUMA

KEY
 Use of excessive force when typing
WORK

TREATMENT
The treatment for a cumulative stress disorder will vary depending on the
location and severity of the injury. For the majority of these injuries, curbing
the activity that caused the trauma in the first place helps keep the pain and
discomfort in check. This would mean a runner with patellar tendonitis would
stop running for a while, for instance. 
But in some cases, these injuries require more aggressive treatments, such
as cortisone shots, or even surgery to correct the damage done by the
repetitive action. 
 SAFETY AND WORK ENVIRONMENT

Organizations are legally responsible for establishing and

maintaining a working environment where employees are able to
work safely, without risk to their physical and psychological
health and welfare. 

GROUP LAYOUT
Likewise, employees are obliged to: comply with any

services

DIFFRENCE
ENVIRONMENT
SAFETRY AND
follow
follow

teams

PRODUCT
legislative requirements and organizational policies and

LAYOUT
KEY
WORK
procedures; work in accordance with agreed safe work
practices; and use all means provided to protect their health and
safety. Employer and employee health and safety responsibilities
are often prescribed in legislation and supported by regulations,
codes of practice and standards. These provide a foundation for
guidelines on workplace safety, compensation and rehabilitation.

Staying healthy and safe at work is important. No matter

what your job, it is important to reduce your risks of injury and
illness at work.